Tesla Approves $29 Billion Incentive Deal to Retain Elon Musk Amid Share Price Decline

Tesla's board has approved a substantial incentive package for Elon Musk, granting him shares valued at approximately $29 billion to ensure his continued leadership. This move comes amid ongoing disputes over Musk's compensation, including a court battle over a $56 billion pay package that was rejected as excessive. Despite a decline in Tesla's sales since Musk publicly supported Donald Trump in the 2024 presidential campaign, the company has prioritized retaining Musk's executive role. The new agreement stipulates that Musk must remain in a top operational position for the next two years to receive the award, which is contingent upon court rulings and includes restrictions on share sales until 2030. Tesla's directors emphasized this step as recognition of Musk's significant contributions, noting that he has not received substantial compensation since 2017. The package comprises 96 million shares valued at $23.34 each, marking one of the largest compensation structures in public markets.